by Renee Israel
Unibet Group, an online gambling company based in Malta, is involved in an
acquisition deal, according to which it will acquire Betchoice Corporation Party
limited, an independent online sports betting company, for an initial £13.6
million in cash.
Betchoice is the operator of a wide range of racebooks and sportsbooks for
Australian online punters and has been licensed by the Northern Territory
Gambling Commission. According to a statement by Unibet, the acquisition will be
completed by the end of the second quarter of this fiscal year.
Mark Morrissey, the founder chairman of Betchoice, who owns a major share in
the company, will get an earn out on the basis of 5.5 times the company's
Australian revenue for the year 2014 prior to tax, interest, amortization, and
depreciation minus the earlier amount. An aggregate of £1.63 million will also
be paid to the other shareholders of the company if the company's 2014 profits
in Australia shoot above the £2.99 million cap.
Unibet CEO said that this strategic acquisition deal gives instant access
into the regulated betting market of Australia. Currently, Australia has
legalized and regulated only horse racing and sports betting activities.
Unibet's Plans for Betchoice in Australia
Unibet also intends to rebrand Betchoice as Unibet shortly after completing
the acquisition process. The combination of Betchoice's quality betting
products, its position in the market, and the marketing experience of Unibet are
expected to greatly improve the performance and quality of it's online sports
betting services and to deliver margin improvements and high revenue growth.
The acquisition of Betchoice will not only give Unibet an existing sports
betting presence in Australia, but will also supply it with a platform to
provide many more online gaming services in the hope that Australia legalizes
and regulates other forms of gambling in the near future.
Betchoice has 35 Australian employees who post acquisition, will join the
Unibet team. However, the acquisition will be completed only when the Northern
Territory Racing Commission gives it the green light.
Morrissey, the founder chairman of Betchoice, will continue with the company
even after Unibet acquires and rebrands it. He has expressed his satisfaction at
being part of a larger Unibet Group.
Speaking about the huge opportunity in Australia, Morrissey said that
Unibet's risk management and marketing strategies together with the excellent
sports betting offering of Betchoice will help the merger increase its market
share and become one of the best of Australian sports betting brands.
